The segment of the housing industry that caters to those home buyers and renters who are 55+ years old saw gradual but steady improvement in 2011. This trend is expected to continue throughout 2012 as more baby boomers turn 55 and seek new homes and communities that offer the lifestyle they desire. However, since the conditions of the current overall housing market are limiting their ability to sell their existing homes, this market is not recovering as quickly as might have been expected.
Like the overall single-family housing market, the 55+ housing segment is facing a slow but steady recovery. "NAHB is projecting that the number of housing starts in 55+ communities will increase 18 percent to 53,200 units in 2012, and another 25 percent, to 66,600 in 2013," said Paul Emrath, NAHB's vice president of survey and housing policy research.
Emrath said the multifamily segment of the 55+ housing market is doing particularly well, with an estimated 57% increase to 21,300 starts in 2011, and further increases in the forecast of 25,400 new apartments in 2012 and 29,100 in 2013.
According to NAHB, the 55+ housing market should continue to gradually improve over the next few years. "Nevertheless, this market remains fragile as many people in this sector who would like to purchase a new home are having difficulties selling their existing homes," noted Emrath. "The issues constraining their ability to sell are the same issues restraining the overall single-family housing market - low appraisals, a large supply of foreclosures and tighter mortgage lending criteria."
Knowing their customer base is important for builders' success in the current economic climate. "The 55+ builders who are doing well in these challenging times are innovative and creative and are in touch with their customer base," said W. Don Whyte, president of Kennecott Land in South Jordan, Utah, and incoming chairman of NAHB's 50+ Housing Council. "Successful builders also continually conduct market research on buyer's preferences and needs."
"Meeting the needs of buyers in the 55+ market involves having a more focused and targeted strategy on how to design, build and market new homes," said Whyte. "Successful builders and developers in the current market will encompass this approach." BD+C
Related Stories
Higher Education | Mar 23, 2015
Hong Kong university building will feature bioclimatic façade
The project's twin-tower design opens the campus up to the neighboring public green space, while maximizing the use of summer winds for natural ventilation.
Religious Facilities | Mar 23, 2015
Is nothing sacred? Seattle church to become a restaurant and ballroom
A Seattle-based real estate developer plans to convert a historic downtown building, which for more than a century has served as a church sanctuary, into a restaurant with ballroom space.
Government Buildings | Mar 23, 2015
SOM leads planning for Egypt’s new $45 billion capital city
To alleviate overcrowding and congestion in Cairo, the Egyptian government is building a new capital from scratch.
BIM and Information Technology | Mar 23, 2015
Skanska hosts three-week 'hackathon' to find architect for Seattle tower development
Searching for a nimble, collaborative design firm for its 2&U tower project in Seattle, the construction giant ditches the traditional RFQ/RFP process for a hackathon-inspired competition.
Healthcare Facilities | Mar 23, 2015
Can advanced elevator technology take vertical hospitals to the next level?
VOA's Douglas King recalls the Odyssey project and ponders vertical transportation in high-rise healthcare design.
Healthcare Facilities | Mar 22, 2015
New Joplin, Mo., hospital built to tornado-resistant standards
The new hospital features a window and frame system that can protect patients from winds of up to 250 mph.
Sports and Recreational Facilities | Mar 19, 2015
Populous design wins competition for UK's most sustainable arena
The live-concert venue will seat an audience of 12,000, which the firm says will be masked by “the atmosphere and intimacy of a 4,000-seat amphitheatre.”
Architects | Mar 18, 2015
Architecture Billings Index rises in February
The ABI score was 50.4 last month, up slightly from a mark of 49.9 in January. This score reflects a minor increase in design services, according to AIA.
Multifamily Housing | Mar 18, 2015
Prefabricated skycubes proposed with 'elastic' living apartments inside
The interiors for each unit are designed using an elastic living concept, where different spaces are created by sliding on tracks.
Architects | Mar 18, 2015
Boston selects finalists in resilient design competition
The competition asks for creative approaches for planning for a not-so-distant future Boston where higher sea levels and more frequent flooding will be real and critical issues to contend with.
